The movie is based on a short student film directed by Kevin Reynolds when he was in USC film school. The student film is basically just the skydiving sequence, based on a true story. Steven Spielberg, having seen the student film Proof (1980), recruited Reynolds to direct a full-length movie based on it.
Kevin Costner auditioned for and lost a part in the student film on which Fandango is based, the same part he later played in the feature film.
Actor Chuck Bush (Dorman), the large, mild-mannered schoolmate, was "discovered" in a '7-Eleven' convenience store. He had no prior experience or connection with the movie industry, prior to being "seen" and asked to "read" for the part.
Actress Suzy Amis was simply billed as "The Girl" in the credits, but her character's name was actually Debbie. Actors Judd Nelson and Sam Robards both say her name in the film.
When the Groovers gang are outside the ruins of Chata Ortega's, just as Gardner finishes his monologue, a flock of birds flies across the frame. Director Kevin Reynolds said in an interview that people often ask him how many takes it took to get the birds to fly up at just the right moment. In reality it was a happy coincidence. The birds just happened to take off at that moment.